Choosing a beneficiary is an essential step in purchasing a life insurance policy. Here at Senn Insurance Agency, serving O’Fallon, MO, and the surrounding areas, we intend to help walk you through these types of important insurance decisions. Keep reading to learn more.
When you purchase a life insurance policy, one of the most important decisions you’ll need to make is who to name as the beneficiary. The beneficiary is the person to which life insurance benefits will be paid in the event of your passing. You should carefully consider who you are naming in this role on the policy.
You have the right to name anyone you would like as a beneficiary. However, some common beneficiaries are often chosen. For instance, married people often choose their spouse to be their beneficiary. Most married people purchase a life insurance policy to provide financial assistance to their spouses should they die. Another common person to name would be a child or children.
If you do not have a spouse or children, you will want to consider another option.
Things to Consider When Choosing a Beneficiary
If you are not choosing a spouse or a child, you will want to consider who would use the insurance benefits properly carefully. The beneficiary on a life insurance policy is often responsible for paying for your final expenses if you have not pre-paid for those already. If there are other things that you would wish for the money to be used for, you should make sure you choose someone who is trustworthy and will carry out your wishes as you have requested.
If you want to learn more about life insurance, please get in touch with us at Senn Insurance Agency, serving O’Fallon, MO, and the surrounding areas.